What financial term describes items one wants to purchase but are not necessary for survival?

The financial term that describes items one wants to purchase but are not necessary for survival is "Wants." Wants refer to the goods and services that enhance one's quality of life but are not essential for basic functioning or survival. These can range from luxury items like designer clothing to entertainment options like dining out or vacations.

Understanding the distinction between wants and needs is crucial in personal finance, as it helps individuals prioritize their spending. While needs are essential items required for basic life such as food, shelter, and healthcare, wants can often lead to overspending if not carefully managed. Recognizing and distinguishing wants is essential for budgeting and making informed financial decisions. This concept is foundational for effective financial planning, enabling individuals to allocate their resources toward both necessary and discretionary purchases appropriately.